kbjones00
4 posts
msg #30081
- Ignore kbjones00 |
11/29/2003 10:22:19 PM
I am brand new to this set of tools and have found the insights in this forum very interesting. I have come up with what I think is a good screen to find a trend reversal (bear-to-bull). I would very much like to hear from anyone who can add some insight into what I am not thinking about. It only finds one stock, RMD, which is one I also like the fundamentals on. Is this the right entry point on RMD ($39.00)?
Here it is:
Show stocks where Fast Stochastic(10,3) Fast %K crossed above Fast Stochastic(10,3) Slow %D within the last 1 day and Average Volume(90) is above 200000 and price is above 1 and price is decreasing last 3 days and price is below 40 and macd fast line(12,26) is below -.6
Your input is greatly appreciated,
Thank you,
K
|
JoeGrossinger
165 posts
msg #30082
- Ignore JoeGrossinger |
11/30/2003 9:41:50 AM
Personally, I have never liked Stochastics although there are some interesting filters that try to exploit it.
Try playing with the Aroon indicators that are documented in the Indicators forum.
I like it because it is one of the best tools for riding trend reversals.
|
TheRumpledOne
6,407 posts
msg #30083
- Ignore TheRumpledOne |
11/30/2003 4:49:31 PM
Check this forum for the discussion of RSI(2) and Linear Regression.
You want to pick TOPS & BOTTOMS? They can't be beat!
MAY ALL YOUR FILLS BE COMPLETE.
|
kbjones00
4 posts
msg #30084
- Ignore kbjones00 |
11/30/2003 7:55:50 PM
Thank you all for your guidance.
|
EWZuber
1,373 posts
msg #30085
- Ignore EWZuber |
12/1/2003 4:32:29 AM
kbjones00
It looks like the Daily chart Fast stochastics ( 10,3 ) approximates the Weekly chart Slow stochastics ( 5,3 ). It looks like this could be a valid way to look for longer term trends but from what I see I suspect it is not as dependable as Convergent Stochastics. Although I would not want to discourage your exploration into 10,3 timing.
I would like to highly recommend that you also use trendlines for confirmation of the change of trend. It is too risky, IMO, to depend solely on one indicator.
Good luck.
|
keithray
13 posts
msg #30086
- Ignore keithray |
12/1/2003 7:11:39 AM
kbjones00
I HIGHLY RECOMMEND that you join the StockFetcher Yahoo Group: http://groups.yahoo.com/group/StockFetcher/
Read everything! You may be skeptical at first. But, if you will absorb all there is to be learned from this group and follow the Muddy Method, you will find yourself making money trading stocks.
Analyzing the chart of RMD, from the Muddy perspective, this would not be a stock that I would personally buy. For a long time, I bought these higher priced stocks. I had to learn from the Muddy group that more money can be made in stocks from $1 to $10. The use of the RSI(2) oscillator, on these low priced stocks, in combination with declining price for the past 3 days, increased volume, and a candle with a long tail, is one of the very best ways to make money in the stock market. Yes, this method is contrary to a lot of what you read in stock trading books. They tell you that you cannot buy tops and bottoms. But, you can. No, you cannot do it every time. Trading is a game of probabilities. And, the Muddy Method is one of the highest probability methods of making money that I have come across. You always use stops, either physical or mental. You have a portfolio of several stocks at any one time. It is the combined percentage gain or loss of this portfolio that you watch.
Here is a chart, using the Muddy Method of analyzing a stock, of RMD:
http://www.geocities.com/keithray/trader/charts/rmd.gif
GOOD TRADING!
Keith
|
EWZuber
1,373 posts
msg #30089
- Ignore EWZuber |
12/1/2003 12:36:20 PM
kbjones00
I agree with you. RMD is about to move higher but so far I don't like todays action. The stock is testing the 200 DMA as resistance, usually not a good thing. However RMD may also be testing the 50 Week MA @ around $38 as support.
I don't know what system you use to locate a buy point, but I would be watching for a break of trendline resistance for an entry. I believe it is just about there. JMHO
|
kbjones00
4 posts
msg #30095
- Ignore kbjones00 |
12/1/2003 9:44:23 PM
Thank you all so much for your insights. I appreciate it very much.
|
EWZuber
1,373 posts
msg #30107
- Ignore EWZuber |
12/3/2003 3:58:28 PM
Looks like RMD completed a Morning Star Doji Candlestick pattern today. Usually indicates a bottom is in place.
Weekly stochastics converging ( bullish ).
This one may be a bit sluggish for a while but looks like a change in the trend.
Watch for a test of resistance at the 25 DMA @ $40.
Support at about $37.80 JMHO
|
EWZuber
1,373 posts
msg #30108
- Ignore EWZuber |
12/3/2003 4:21:26 PM
Notice that the stock has tested the 50 Week MA as support at ~$38 successfully.
|